The National Assembly of Venezuela unanimously approved a reform of the hydrocarbons law that authorizes the entry of foreign capital into oil exploitation and allows for the direct participation of private companies in the sector, after more than two decades of strict state control over PDVSA.
This event, enthusiastically announced by President Delcy Rodríguez as a period of prosperity and progress for the South American nation, marks the end of Chavismo's control over Petróleos de Venezuela SA (PDVSA) and meets the conditions set by the Government of United States to normalize economic relations with Caracas.
The new law allows for the signing of direct contracts between PDVSA and private companies, whether national or foreign, without the need to establish joint ventures, as required by previous regulations.
Although the state retains ownership of the deposits, investors will be responsible for the extraction, marketing, and export of the crude oil.
Among the new developments is the authorization for private entities to manage bank accounts abroad and directly trade oil.
The royalties to the State are set at a maximum of 30%, with the possibility of modification by the Executive, and broad tax exemptions are established for those who invest in the sector.
Moreover, the law introduces an international arbitration clause that will allow disputes to be resolved outside Venezuelan courts, a change aimed at providing assurances to investors after the expropriations that characterized the era of Hugo Chávez.
“Today is a historic day for the Republic, because in the face of adversity we have been able to keep our oil industry thriving,” declared the president of the Parliament, Jorge Rodríguez, as he concluded the session.
"By upholding the principles of sovereignty and independence, and the Republic's ownership of its resources, we will make the sector more competitive by allowing the hiring of national and foreign companies," he added.
The text was approved with the support of both the ruling party deputies and the opposition, in a session that sealed the political agreement between the interim administration of Delcy Rodríguez and Washington.
The reform was processed swiftly, in line with the commitments made following the U.S. military operation on January 3 that resulted in the capture of Nicolás Maduro and his wife, Cilia Flores.
The U.S. Department of the Treasury, for its part, issued general license 46, which authorizes transactions with the Government of Venezuela and with PDVSA “for the lifting, export, marketing, purchase, or transportation of Venezuelan oil.”
The authorization includes the refining of crude oil by U.S. entities, as long as companies from Russia, Iran, North Korea, or Cuba are not involved.
Moreover, Washington announced the lifting of the air restrictions and the resumption of direct flights between the two countries, which had been suspended since 2019.
The measure is interpreted as a further step in the process of bilateral normalization following the fall of chavismo and the beginning of a democratic transition period under international oversight.
A new economic framework after Maduro's fall
Since the arrest of Nicolás Maduro on January 3, Venezuela has undergone a rapid process of economic and diplomatic reintegration.
The United States reopened its embassy in Caracas on January 15, and Secretary of State Marco Rubio has highlighted the “significant progress” in bilateral cooperation and the end of international isolation of the South American country.
"Venezuelan authorities have approved a law that eliminates many of the restrictions imposed during the Chávez era on private investment. It is a crucial step towards rebuilding the Venezuelan economy," said Rubio during an appearance before the U.S. Senate.
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